The Indian government may declare illegal possession of unregulated cryptocurrencies

The report prepared by the governmental Committee headed by the Minister of economy of India by Chandra Subhash Gargon, proposed amendments to existing legislation and to invalidate the storage scriptactive that do not have approval from the government.

The Committee of the government of India headed by Chandra Subhash Garga proposed legislative amendments and to introduce penalties for owners of “unauthorized” scriptaction.

The government of India is of the opinion that scriptactive, which are not regulated in the country, should not be used in the Indian financial ecosystem. Turnover of unregulated cryptocurrency, in the Committee’s opinion, entails their use in illicit transactions facilitates money laundering, tax evasion and the organization of financial pyramids and multilevel marketing schemes.

If appropriate legislative changes are adopted, India will become the toughest jurisdiction for the users of cryptocurrencies. Other countries, particularly China, prohibit only the trade digital assets in tandem with national currencies, but to own them citizens is not prohibited.

It is expected that the Committee will submit the bill in December. In addition to Secretary for economic Affairs, the Committee includes representatives of Central Bank of India and securities and exchange Board of India.

The bill would not be a surprise, given the anti-cryptocurrency stance of various state institutions of India. In June came into force the prohibition of Central Bank of India at the facilities of cryptocurrency exchanges, and the Supreme court of India refused to grant a temporary reprieve cryptomeria and to lift the ban. As a result, many trading platforms in the country announced the closure applies to them and one of the largest cryptocurrency exchanges in the country Zebpay.